Page 96 - DBP5043
P. 96

CALCULATE THE EFFECTIVE COST OF


                                 COMMERCIAL PAPER







            Example 12

            Anjung Industries plans to sell RM 200,000,000 in 250 day maturity
            paper which expected discount interest 10% per annum. The firm also
            expects to incur RM 200,000 in dealer placement fees and other
            expenses of issuing the paper
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